Author: Ivanhoff

MarketSurge powers the charts in this video.

Last week, we saw another significant selloff in tech, led by AI-related stocks. AMD tested 200. NVDA tested 170. QQQ tested 600. Just when the tone was turning overly bearish, Micron (MU) came out with record earnings, margins, and guidance way above estimates, and everything AI went back higher. The lower-than-expected November inflation readings also helped, despite being massaged to fit the government narrative. Manipulated or not, what matters in the short term is the market reaction, as it reflects the current sentiment. 

You can alter the inflation readings, but you cannot manipulate the price action in metals. Gold and silver are having one of their best years in history. Not only that, but industrial metals are also breaking out and setting up – platinum, copper, aluminium, steel, etc.

Space-related stocks are having a strong finish to the year. The rumours of SpaceX’s IPO have stirred speculation in the space – RKLB, ASTS, PL, BKSY, ATRO, ISSC, KTOS, ATI, etc.

The so-called Santa Claus rally is back on the map. By definition, it involved the last five and the first two trading days of the year. Small caps tend to benefit the most from this occurrence as people buy in anticipation of the so-called January effect.

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MarketSurge powers the charts in this video.

As expected, the Fed cut the overnight rate again by 25bps. The biggest winners were gold and silver miners. It is the market’s way of saying that maybe the higher-than-average inflation problem is not likely to be resolved any time soon, as government deficits continue to balloon. We saw a big rotation – out of big tech and into small caps. Russell 2k broke out from a multi-month base to new multi-year highs. Big tech lagged, dragged by worse-than-expected earnings results from Oracle and Broadcom. 

Volatility and choppiness have increased substantially lately. Most AI-related stocks are under severe pressure and are easily giving back gains – CEG, APH, VRT, NVDA, CRDO, GEV, etc. JPM had a big drop during the week after warning of higher expected expenses in 2026 due to a fragile consumer environment. It quickly recovered the decline by the end of the week as the financial sector made new all-time highs.

SpaceX IPO chatter sparked interest in space stocks. They were among the best performers last week and continue to look constructive – ECHO, ASTS, RKLB, PL.

Cannabis stocks also had a strong week on rumors that Trump might reclassify marijuana. VFF has the most constructive chart in the space.

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Check out my free weekly email to get an idea of the content I share with members. See how my ideas/alerts performed.

You can find my trading books on Amazon here.

Disclaimer: Everything I share is for educational and informational purposes only, and it should not be considered financial advice. Read my full disclaimer here.

MarketSurge powers the charts in this video.

TSLA and PLTR are back above their 50-day moving average. NVDA is holding its rising 20-week moving average. Even META had a big bounce after announcing that they plan to slash expenses for their Metaverse initiative by 30%. Bitcoin and Ethereum also found some support and are potentially working on a higher low. The small-cap index is back near its 52-week highs. The dips were bought again. This is what happens in bull markets.

In the meantime, the highly-shorted speculative groups are bouncing back – you know the ones that doubled and tripled in September and then dropped 50% in October and November – nuclear, rare earth metals, quantum computing, space. The trouble with many of those stocks is that they are so starved for cash that they are using every little bounce to raise more money and dilute current shareholders. I view them strictly as short-term trading vehicles. 

There’s an appetite for risk, but it might be tapered, at least temporarily, next week. The Fed will announce its latest decision on rates on December 10th. Previously, we would see a drop in rates ahead of a Fed meeting as the market anticipated a cut. The market is not so sure this time. Rates have been rallying. If there’s no cut this time, we might see a short-term pullback. 

Try my subscription service, which includes a Discord room and private X feed with options and stock ideas, emails with concise market commentary, real-time market education, the Momentum 40 list of market leaders, and much more. See what subscribers say about my educational service.

Check out my free weekly email to get an idea of the content I share with members. See how my ideas/alerts performed.

You can find my trading books on Amazon here.

Disclaimer: Everything I share is for educational and informational purposes only, and it should not be considered financial advice. Read my full disclaimer here.